Is Avon a Pyramid Scheme? What You Should Know
If you are interested in the business opportunity offered but a little worried and wondering is Avon a pyramid scheme then I am writing this for you. There is a lot of fog surrounding this company on whether or not they are a scam and I want to clear the air here.
In this short post I’ll be going over all you need to know about this business opportunity and will be specifically focusing on the “pyramid scheme” aspect of this business.
Avon Representative Review
- Company: Avon
- Website: avon.com
- Cost to Start: $25 minimum
- Recommended?: For some people, more on this
- Related MLM’s: Younique, Mary Kay, Jeunesse
Just to be clear here, this post is specifically about the business opportunity that Avon offers, not the products.
To begin I first think its important to give a brief overview of the job and what it entails.
Brief Job Description
Avon is what you call a direct sales based company. This means that anyone can join in on the opportunity and work as an Avon Representative, selling their products and making commissions.
There are 2 ways that you will be selling, which include face-to-face and online.
When selling face to face you will be selling out of catalogs, you won’t actually be carrying products on-hand. What happens is you will collect the customers payment info and order info and place an order through Avon’s online portal. The products will then be sent to you and you will then deliver them.
Selling online is less of a hassle. The customers can place the orders themselves, you will get paid instantly, and the items will get sent right to the customer.
Besides selling, Avon Reps also should take advantage of the mlm structure of this business if they want to make good money. What this means is that you are going to need to recruit, recruit, and recruit more Reps to work beneath you so that you can make money off of them (this is the pyramid scheme part of it).
Cost To Join
In order to join in you are first going to have to buy 1 of 3 starter kits.
- Quick Starter Kit
- Advanced Starter Kit
- Premium Starter Kit
The Quick Starter Kit is the cheapest and only costs $25 right now.
These kits are designed to give you a boost to get your home-based Avon business up and running and will supply you with sales tools, products, samples, a website, and other things.
How You Make Money
The 2 main ways that you make money are through direct sales and by recruiting other Reps.
Direct sales is pretty straight forward. As I went over in the job description, you will be selling directly to customers.
When you first get started Avon suggests running what they call campaigns, which are 2 week periods in which you have a certain goal in mind. If you reach your sales goals you will earn 40% commissions.
As outlined by the chart below, if you complete 6 campaigns and follow what Avon recommends you can make over $1,000 in your first 14 weeks, which is decent but nothing to write home about.
This money is great and all but the real money lies in the recruiting of other Reps, and this is what I want to focus on here.
Everyone that makes good money knows that in order to do so you are going to have to recruit. You are going to have to take full advantage of Avon’s mlm compensation structure and make money from the efforts of those recruited in beneath you.
The MLM Structure
Its hard to figure out what exactly the structure looks like here because there are no diagrams, charts, or anything provided by the company.
However, I do know that you can earn commissions up to 3 levels deep.
The structure seems to be uni-level, which means that each level can expand out infinitely.
So if you look at the diagram to the right that I posted, you are the blue person, the red people are your personal recruits, and the orange people are those that the red people recruited.
The red people are your 1st level and the orange make up the 2nd level. Each of these levels can expand outward infinitely as more recruits come in.
Avon Reps can earn commissions down 3 levels, which would be one more level than in the diagram. They can earn anywhere from 1-5% on the first level depending on their rank and 1% on levels 2 and 3.
This may not seem like much but as you recruit more people and they recruit more people, and on and on… it can keep branching out and that will really add up.
Is This a Pyramid Scheme?
So is Avon a pyramid scheme?
The line between a legitimate mlm and an illegal pyramid scheme is more skewed than one may think. In order for Avon to be considered a pyramid scheme its revenue would have to be overly dependent on recruitment of new Reps rather than product sales to the general public.
So is it too dependent on recruitment? This is a difficult question to answer. What I think is that they lean toward the shady side of mlm’s but have not quite crossed the line.
It is true that they do push Reps to go out and recruit. And reps can even make instant money from the starter kits that new recruits are forced to purchase. There is definitely a lot of incentive to go out and recruit. But they do still put a fair amount of focus on sales to the general public and for that reason I would say that they are not a pyramid scheme.
But just because its legitimate doesn’t mean you should run out there and start your own Avon business.
Related Reading: Difference Between MLM’s & Pyramid Schemes
It Is Harder Than You May Think
MLM businesses like this have a very high turnover rate. People often get sucked in with dreams of making it rich and find out that it is much more difficult than they imagined.
The fact of the matter is that if you want to be successful you are going to have to be a beast at recruiting others. You are going to want to be constantly recruiting new people in and taking advantage of the mlm structure of this business.
Final Thoughts & What I Recommend
Avon is definitely legitimate and I don’t see any strong proof that they would actually be considered an illegal pyramid scheme, although some of their business I do consider “shady”.
But if you are going to make it in this business you are going to have to have a heck of a lot of drive. You will also need that salesperson type of personality. If you have these qualities and you like Avon products then why not go for it. Start your own Avon business and climb your way to the top.
The problem is that this is not easy and that mlm’s generally have very high turnover rates due to their difficulty. If you don’t have a salesperson type personality and think it would be hard for you to recruit, then this might not be a good option for you.
If you are like me and are just not the salesperson type and don’t think a recruitment style business like this is right for you.. and you want another option for making money with your own business, you should take a peek at how I make a living working online (link below). I work for myself online and really enjoy what I do. In the post I wrote I explain what it is that I do, how it all works, and how others can do the same.
Comments, questions, concerns??? Leave them below in the comment section and I’ll get back to you soon 🙂